Does China Hold the Key to Apple’s Future?

4/24/2013 4:36AM

Apple Inc.'s second-quarter sales in Greater China were up 8% from a year earlier. The WSJ’s Paul Mozur talks about what the company needs to do to stay competitive in the world’s fastest-growing smartphone market.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the the bright spot for Apple's sales of the company has its first profit dropped in a decade and ever con joining me is the Wall Street Journal's ... Paul Mozur from Beijing hype on ... so Paul was serious competition to the likes of Samsung and I'm in China ... he is the isthe at Apple really been ... getting market share that ... yellow suits you is that breaks it weren't ... for the company Apple ... for China and ... East was the only place that sells really grew for the company that that's in part because they just launched the yet the outgoing December six newly launched ... by the problem for Apple rate now agree they are ... holding on to market shares reducing the rate in first quarter numbers yet ... but certainly if you're in a lot of competition at lower price point so ... we have books that now is gone are the days when the really expensive phones ... were selling you more and more each each quarter and people are staring at your took a ... cheaper smartphones at her preschool below Apple's range which is ... the middle of the global companies Lenovo bought where selling them well and then also forced enterprise Samsung ... audio across the region on deals below selling extremely well well so it's it's can it be that of Apple with a hefty side ... with interest are targeting lower priced loans or four months have been the highly profitable upper range that they commit to strongly across the bow ... ok and I'm always looking for a day in and that Apple has been talking to China immobile ... at how much and its future success and is on finalizing a deal ... with the telecom carrier ... we ... see them much of its future success hinges on this uncertainty it's an important component for Apple to remain competitive in the country ... new China Mobile is China's largest carrier has spent seven hundred new users which sells a lot of that but of those uses the ones who might actually buy Apple products are significantly less ... nonetheless the huge beast and it's it's it's a it's a group that Apple been trying to target for years they've been in talks for years ... I'm just really you know is that the ski Apple's sales ... start at peter up a little bit growth to slow ... it does put pressure on them to sign that deals that they can find that its growth healing every little corner that they that they can get it ... at KNF chorus I've always really got into trouble in China over its warranty policies impact cut even making ... a public apology add to China ... over the issue you sell ... any sense that I mean you know a lot of foreign companies in China complain this aam really of a level playing field ... with competition from local Chinese companies ... on any sense of how a dynamic and how fast and competitive these these local ... at the local competition is and if they could actually and dominate the States um you know in in even a higher price than this ... he laments that CD you been pressuring answering the applicable sees this he she retired CCTV and that the People's Daily getting out of them ... I they responded with an apology from Tim Cook it's hard to say on this that happened this last quarter but it's hard to see whether that Priceline reflected much ... people still like the I phone a lot of course the government ... officials who choose to sites like YouTube sensation new taxes to determine how the purchase things to us was in the nearby restaurants one who global smartphone front ... it ... is really the question ... of the ... falling Lenovo bigger brands they were to evaluate us they are really making a push to climb up that that she didn't offer more expensive phones but for now circling the upper end chains teachers I remember one winter mean for once each Samsung's the apples of the date of the local carriers are doing it ... local lawmakers are doing their best and then glued them still had a couple gaggle of smaller companies you've never heard of before ... Cubbies the cool added little chilly ... I've been making phones are pushing you know the one hundred dollars bracelets for seventy five dollars ... so I will we look that markets are lead the local guys are competing at the top briefly haven't seen anybody do we have a great breakthrough yet ... but certainly for Apple and Samsung that that's that's concerned that something to watch closely ... okay